GST Appellate Tribunal Constituted But Not Functional: Gujarat High Court Stays Recovery Of Dues

The Gujarat High Court has stayed the order for recovery of dues on the grounds that, though the GST Appellate Tribunal was constituted, it was not functional.

The bench of Justice Biren Vaishnav and Justice Mauna M. Bhatt has observed that though the Tribunal is constituted, it is still not functioning, and the competent authorities think it fit to issue orders of recovery, asking the assessees for information on whether an appeal has been filed at all. This apparently is a contradistinction between the authorities in question.

The petitioner has challenged the order passed by the Appellate Authority under the CGST. Since no tribunal is constituted, the challenge to the order is by way of the petition. The office of the Superintendent, AR-V, Division-VI, has initiated the recovery of penalties pursuant to the order.

The order would indicate that the author of the order had opined that the petitioner should inform the authority if any appeal or stay application has been filed against the OIA dated July 31, 2023, and whether the Appellate Authority has granted a stay of the order.

It was the case of the authority that if no stay of recovery of dues had been granted, the petitioner was called upon to pay the dues in question.

The court, while acknowledging the fact that the tribunal was constituted as non-functional, issued the notice and stayed the order, initiating steps of recovery until the next date of hearing.

Counsel For Petitioner: Uchit N Sheth

Counsel For Respondent: None

LL Citation: 2023 LiveLaw (Guj) 176

Case Title: Rajkalp Mudranalya Private Limited Thro Kalpesh Maneklal Patel Versus Superintendent

Case No.: R/Special Civil Application No. 18779 Of 2023

Click Here To Read The Order